Regions Financial Corp. has renewed its contract with Federated Services, Pittsburgh, to provide mutual fund administration and distribution for the bank's fund family.
The Birmingham, Ala., banking company manages roughly $1.2 billion in six Regions Funds.
Regions, which has worked with Federated since 1992, has renewed the contract until 2001, said Lee Cox, a Regions vice president and head of the fund group. Regions is working on a number of new strategies to increase its fund assets, and Federated has agreed to work with the bank, he said.
Regions will introduce a small-capitalization aggressive growth fund in December and is mulling a tax-free bond fund and an international portfolio.
Regions considered other distributors, but stayed with Federated because the company was quick to meet its requests, which included investing more money in marketing the funds.
Federated, a subsidiary of Federated Investors, administers roughly $51.7 billion of fund assets and conducts most of its fund servicing business with banks.
Other banks on its client list include Wachovia Corp., Winston-Salem, N.C., and Marshall & Ilsley Corp., Milwaukee.